Benefits & Drawbacks of Singapore Citizenship

Singapore is considered as one of the best cities in Asia to live in. It is safe, environmentally-friendly and a melting pot of culture. It ranks high in most of the World Rankings and reports and is said to have a high quality of living. These factors among others attract many of us to Singapore, often on a long term basis. Consequently, many of us toy with the question of whether or not to secure Singapore Citizenship. This guide compares the pros and cons of becoming a Singapore citizen.

Advantages of Singapore Citizenship

Singapore Passport Travel Freedom

Singapore Passport holders have very few travel restrictions around the world. A Singapore Passport holder enjoys liberal visa requirements especially while travelling to destinations like the USA.

According to the Henley Visa Restrictions Index, 2018 – a global ranking of countries according to the travel freedom (visa free access) their citizens enjoy – Singapore ranked 2nd in the study, proving the high degree of travel freedom its citizens enjoy.

Employment Rewards

Most companies prefer to hire citizens or PRs than foreigners. In addition to general mentality, the advantage for employers is that there is less paperwork, formalities and expenses involved.

Housing

Only Singapore citizens (over 21 years of age) are eligible to buy and rent apartments from the Housing & Development Board (HDB). These include subsidised 2-room (i.e 1 bdrm + living room), 3-room (2 bdrm + 1 living room), 4-room (3 bdrm + living room), 5-room (4 bdrm + living room) and executive flats. Singapore citizens are also eligible to buy subsidised executive condos and studio apartments developed by the HDB.

Citizens can also enjoy the unique benefit of obtaining loans, at a concessionary interest rate, from the HDB to fund their housing. In addition, Singapore citizens who are first-time buyers of government-built flats can enjoy housing subsidies such as the housing grant. The CPF Housing Grant is a subsidy (up to SGD 40,000) provided by the Government to assist households who have met the eligibility criteria to buy a HDB flat.

Only a Singapore citizen is eligible to rent a subsidised flat from the HDB, upon satisfying eligibility criteria.

When HDB flats are being upgraded by the Government, Citizens pay only a fraction of the costs while Permanent Residents have to pay the full upgrading cost of items that they have opted for.

While citizens can buy any type of private residential property, Permanent Residents must first seek approval from the Ministry of Law if they want to buy landed property. Listed below is a brief overview of various features for each type of resident.

	Citizens	PRs	Foreigners
Purchase of subsidised new flats from HDB	Eligible	Not Eligible	Not Eligible
Purchase of resale HDB flats	Eligible	Eligible (Subject to HDB’s Eligibility schemes)	Not Eligible
Rental of subsidised flats from HDB	Eligible	Not Eligible	Not Eligible
Rental of a room/flat from home owners	Eligible	Eligible	Eligible
Purchase of non-landed property- private apartments/condos	Eligible	Eligible	Eligible
Purchase of landed property – bungalows, terrace housing	Eligible	Eligible (Subject to approval from Ministry of law)	Not Eligible
Rental of landed and non-landed property	Eligible	Eligible	Eligible
CPF Housing Grant	Eligible	Not Eligible	Not Eligible
Main Upgrading Subsidy and concessionary interest rate for payment of upgrading cost	Eligible	Not Eligible	Not Eligible
Mortgage loans from HDB at a concessionary interest rate	Eligible	Not Eligible	Not Eligible
Mortgage loans from banks	Eligible	Eligible	Not Eligible

Note: Eligibility is subject to fulfilling certain conditions. For more information please visit the Housing & Development Board Infoweb.

Central Provident Fund (CPF)

The CPF is a compulsory social security savings plan for Citizens and Permanent Residents. Both employers and employees make monthly contributions of 17% and 20% respectively to the CPF which is divided into three accounts: Ordinary Account (the savings can be used to buy a home, pay for CPF insurance, investment and education), Special Account (for old age, contingency purposes and investment in retirement-related financial products) and Medisave Account (the savings can be used for hospitalization expenses and approved medical insurance).

The CPF contributions by the employer are non taxable and your share of the contribution can be used for tax relief purposes. Non-citizens and non-PR’s are not eligible for CPF. Any contributions by a foreigner is considered voluntary contribution and cannot be used for tax relief purposes.

For more information please visit Central Provident Fund.

Education

Edusave Scheme

The Edusave Scheme is a government initiative to maximise opportunities for all Singaporean children.
The scheme awards students who excel in academic and non-academic activities. It covers students who are Singapore citizens, studying full-time in a government or government aided or independent school, junior college (JC), centralised institute (CI), Institute of Technical Education (ITE) or special education school. The three components of the scheme are Edusave Pupils Fund, Edusave Grants and Edusave Scholarships & Awards.

School/University fees

Typically, Permanent Residents and Foreign Students pay a higher percentage of school and university fees when compared to Singapore Citizens. The table below shows a brief comparison of the estimated fees and schemes for 2019 for the three types of residents (the fees below are not inclusive of miscellaneous fees that all students have to pay).

	Citizens	PRs	Foreign Students
School Fees payable in SGD
Government Schools (school fees per month)
Primary level	Free	SGD 180	SGS 440 - 700
Secondary Level	SGD 5	SGD 320	SGD 720 - 1,250
Pre-University level (Junior Colleges, Centralised Institute)	SGD 6	SGD 400	SGD 980 - 1,600
Others (school fees per annum)
ITE	SGD 406 - 626	SGD 5,023 - 7,833	SGD 13,470 - 20,480
Polytechnics	SGD 2,800	SGD 5,600	SGD 10,000
Universities (NUS, NTU, SMU)	Depending on school and programme
Subsidy/Schemes
Edusave Scheme	Eligible	Not Eligible	Not Eligible

For more information, please visit Ministry of Education.

Health-care

Medifund

Medifund is an endowment fund set up by the Government to help finance medical expenses of needy Singaporeans only. The Medifund grants are provided to approved hospitals and medical institutions, to help low income Singapore citizens (who on satisfying certain eligibility criteria) pay for their medical treatment. This service is not available to Permanent Residents or Employment Pass/Work Permit holders.

Primary Care Partnership Scheme (PCPS)

At present, the 18 polyclinics spread across Singapore offer affordable primary health-care. However there are some citizens who may not be able to get to these polyclinics and the PCPS tries to bring affordable health-care closer to them. Under this scheme, participating private general practitioners and dentists provide common outpatient medical and dental treatment at polyclinic-level charges. The PCPS is applicable to citizens only (who also have to satisfy other eligibility criteria).

Medical Fees and Charges

The medical consultation charges in polyclinics are marginally higher for Permanent Residents and non residents when compared to citizens. Subsidies at restructured hospitals for Permanent Residents is 10% lesser than citizens of the same income level. For example, a Singaporean patient who stays in Class C ward and has a monthly income in the range of $3,351-$3,500 will get a hospitalisation subsidy of 78%. Whereas, a Singapore Permanent Resident staying in the same class ward and earning the same salary range will get a hospitalisation subsidy of 68%.Foreigners on the other hand are not eligible to receive hospitalisation subsidy. Mentioned below is a comparison of subsidies available for Citizens, PR’s and Foreigners.

	Citizens	PRs	Foreigners
Public Healthcare Subsidies
Public & Restructured Hospitals (% subsidised)
Types of Ward Class
Class B1	20%	10%	Not Eligible
Class B2	65%	55%	Not Eligible
Class C	80%	70%	Not Eligible
Types of service
Day Surgery	65%	55%	Not Eligible
Specialist Outpatient Clinic (SOC)	50%	40%	Not Eligible
Polyclinics medical consultation charges in SGD – approximate figures
Adult	8-9	12-14	Not Eligible
Child/Elderly	4-5	12-14	Not Eligible
Healthcare Financing Schemes
Medisave	6-8% of monthly wage	6-8% of monthly wage	Not Eligible
Medishield	Eligible	Eligible	Not Eligible
Eldershield	Eligible	Eligible	Not Eligible
Primary Care Partnership Scheme	Eligible	Not Eligible	Not Eligible
Medifund	Eligible	Not Eligible	Not Eligible

Note: Eligibility is subject to fulfilling certain conditions. For more information please visit, Ministry of Health.

Election

Only Singapore Citizens have the right to:

• vote in parliamentary elections
• stand for election and become a member of Parliament

	Citizens	PRs	Foreigners
Right to vote in parliamentary elections	Eligible	Not Eligible	Not Eligible
Right to stand for election and become a MP	Eligible	Not Eligible	Not Eligible

Leave Benefits

Maternity Leave

You are entitled to 16 weeks of paid maternity leave if your child is a Singapore Citizen. For the first two confinements, the first eight weeks of maternity leave will be employer-paid. The last eight weeks will be funded by the Government (capped at SGD 20,000 per confinement including CPF). For the third and subsequent confinements, the full 16 weeks will be funded by the Government (capped at SGD 40,000 per confinement including CPF). In case neither you nor your child is a Singapore citizen, the number of days of paid maternity leave will depend on your employment contract.

Enhanced Childcare Leave

Parents of Singapore citizens, who have worked for the employer for at least three months, will be entitled to 6 days of paid childcare leave per year per parent until the child turns seven, regardless of the birth order of the child. The first three days will be employer-paid and the last three days Government-paid (capped at 500 SGD per day, including CPF). Regardless of the number of children, the total childcare leave entitlement for each parent is capped at 6 days per year. In case neither you nor your child is a Singapore citizen, the number of days of enhanced childcare leave will depend on your employment contract.

New Infant care Leave

Parents of Singapore citizens, who have worked for the employer for at least three months, will be entitled to 6 days of unpaid infant care leave per year per parent until the child turns two, regardless of the birth order of the child. In case neither you nor your child is a Singapore citizen, the number of days of new infant care leave will depend on your employment contract.

Parenthood Incentives

Baby Bonus Scheme

If your child is a Singapore citizen then he/she is eligible for the Baby Bonus Scheme. The Baby Bonus Scheme is a government initiative that supports parents’ decision to have more children by helping to ease the financial burden of raising children. A cash gift of up to SGD 8,000 for the first and second child and up to SGD 10,000 for the third and fourth child is provided by the Government. In addition, your children will also enjoy Government contributions in the form of a dollar-to-dollar matching for the amount of savings you contribute to your child’s Children Development Account (CDA). The CDA is a special savings account for your children, until they turn 6 years of age. The Government contribution to the CDA for your first and second child is up to a cap of SGD 6000 and up to SGD 12000 for the third and fourth child.

Centre-based child care and infant care subsidy

This is a government initiative aimed at making centre-based child and infant care a more affordable option. Infant care subsidy up to SGD 600 a month is available to Singapore citizen’s infants aged 2-18 months, who are enrolled in licenced child care centres. Child care subsidy up to SGD 300 will be available to Singapore citizen’s children below 7 years of age attending licenced child care centres.

Parenthood Tax Rebate (PTR)

PTR is a lump sum rebate given to married Singapore tax residents to encourage them to have more Singapore Citizen children by providing them with financial support for bringing up their children. The PTR can also be used to offset their income tax payable. It is applicable to Singaporean children of Singapore tax residents. With effect, Year of Assessment 2009, PTR up to SGD 5000 for the first child, up to SGD 10,000 for the second child and up to SGD 20,000 for the third and every subsequent child can be claimed.

Tax Matters

There are certain tax relief benefits that are exclusive to citizens. Enlisted below are 6 types of tax incentives for parenthood specifically, which are applicable only to citizens and do not extend to PR’s or foreigners.

Parenthood Tax Rebate

PTR is a lump sum rebate given to married Singapore tax residents to encourage them to have more Singapore Citizen children. The PTR can also be used to offset their income tax payable. It is applicable to Singaporean children of Singapore tax residents. With effect, Year of Assessment 2009, PTR up to SGD 5000 for the first child, up to SGD 10,000 for the second child and up to SGD 20,000 for the third and every subsequent child can be claimed.

Working Mother’s Child Relief (WMCR)

WMCR was introduced to reward families with children holding Singapore citizenship and to encourage parents to take up citizenship for their children. This relief can be claimed by a working mother who is a Singapore tax resident and whose children are Singapore citizens. There are other eligibility criteria that need to be fulfilled as well. The amount of WMCR claimable for each child is based on a specified percentage of the working mother’s earned income corresponding to the child order – 15% of mother’s earned income for the first child, 20% for the second child, 25% for the third and every subsequent child thereafter. This is with effect Year of Assessment 2009.

Qualifying/Handicapped Child Relief (QCR/HCR)

This relief is given in recognition of families efforts in supporting their children and caring for handicapped children. On satisfying the QCR/HCR eligibility criteria and any additional set of criteria applicable to the child, relief to the tune of SGD 4000 and SGD 5500 can be claimed under QCR and HCR respectively.

Grandparent Caregiver Relief (GCR)

GCR is a relief to provide recognition for grandparents who play the role of caregiver and help working mothers take care of their children. The children have to be Singapore citizens and the grand-parent should be living in Singapore. There are other eligibility criteria that need to be met as well. You can claim SGD 3000 as GCR.

Income tax rates are the same for citizens, PR’s and foreigners (if foreigners have resided in Singapore for 183 days or more in the previous year). However, all Central Provident Fund contributions by citizens and PR’s, including the employers contribution is non-taxable. In addition, the employee’s contribution can also be used for tax relief purposes. Foreigners do not enjoy tax relief for CPF.

The table below compares the tax relief available for Citizens, PR’s and Foreigners.

	Citizens	PRs	Foreigners
Tax incentives for parenthood
Parenthood Tax Rebate	Eligible	Not Eligible	Not Eligible
Working Mother’s Child Relief	Eligible	Not Eligible	Not Eligible
Qualifying Child Relief	Eligible	Eligible	Eligible
Handicapped Child Relief	Eligible	Eligible	Eligible
Grandparent Caregiver Relief	Eligible	Not Eligible	Not Eligible
Others
Tax Relief for CPF (Central Provident Fund) Contributions	Eligible	Eligible	Not Eligible
Tax Relief for CPF Cash-Top Up	Eligible	Eligible	Not Eligible

Disadvantages of Singapore Citizenship

National Service (NS)

Male Singapore citizens are liable for National Service and must register for NS upon reaching 16.5 years of age. They will be enlisted for two years of full-time National Service immediately upon reaching the age of 18, unless deferment from enlistment a later date is granted. They are also required to serve 40 days of Operationally Ready National Service every year until the age of 50 years (for officers) or 40 years (for non-officers). Hence if you become a Singapore citizen your male child will have to serve the two-years of National Service. This is also applicable for second generation PRs.

	Citizens	PRs	Foreigners
National Service	Mandatory	Second generation male PRs	Not Eligible

No Dual Citizenship

If you decide to become a Singapore citizen you will have to renounce citizenship of your home country and give up your home country passport. Singapore does not allow dual citizenship.

CPF Withdrawal Limitation

If you wish to withdraw all your CPF savings as a lump sum, the only option is to renounce your citizenship status. This rule holds for Permanent Residents as well.

On the whole, many people find it beneficial to become a Singapore Citizen and eventually make Singapore their home.